South Dakota § 55-1-43 - Discretionary interests.
Full text of South Dakota South Dakota Codified Laws § 55-1-43 — Discretionary interests., with citation guidance and answers to common questions.
§ 55-1-43. Discretionary interests.
The following provisions apply only to discretionary interests:
(1) A discretionary interest is neither a property interest nor an enforceable right. It is a mere expectancy;
(2) No creditor may force a distribution with regard to a discretionary interest. No creditor may require the trustee to exercise the trustee's discretion to make a distribution with regard to a discretionary interest;
(3) A court may review a trustee's distribution discretion only if the trustee:
(a) Acts dishonestly;
(b) Acts with an improper motive; or
(c) Fails, if under a duty to do so, to act.
A reasonableness standard may not be applied to the exercise of discretion by the trustee with regard to a discretionary interest. Other than for the three circumstances listed in this subdivision, a court has no jurisdiction to review the trustee's discretion or to force a distribution.
Absent express language to the contrary, in the event that the distribution language in a discretionary interest permits unequal distributions between beneficiaries or distributions to the exclusion of other beneficiaries, the trustee may distribute all of the accumulated, accrued, or undistributed income and principal to one beneficiary in the trustee's discretion.
Regardless of whether a beneficiary has any outstanding creditor, a trustee of a discretionary interest may directly pay any expense on behalf of such beneficiary and may exhaust the income and principal of the trust for the benefit of such beneficiary. No trustee is liable to any creditor for paying the expenses of a beneficiary of a discretionary interest.
Source: SL 2007, ch 280, § 20; SL 2009, ch 252, § 11.
Source: official South Dakota text · Last verified 2026-08-27
Frequently Asked Questions About South Dakota § 55-1-43
What does South Dakota Codified Laws § 55-1-43 cover?
Section 55-1-43 ("Discretionary interests.") is part of the South Dakota Codified Laws, the codified statutory law of South Dakota. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite South Dakota § 55-1-43?
A common citation format is "South Dakota Codified Laws § 55-1-43" (South Dakota). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of South Dakota law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the South Dakota official source linked on this page or consult a licensed South Dakota attorney.
How does South Dakota § 55-1-43 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in South Dakota can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in South Dakota.